The Role of Institutional Structure in the Effect of Monetary Policy on Growth: An Application on Countries at Different Income Levels

Authors : Murat Eren, Selim Başar

Pages : 61-80

Doi:10.17233/sosyoekonomi.2023.04.03

View : 178 | Download : 285

Publication Date : 2023-10-26

Article Type : Research Paper

Abstract :In this study, the impact of monetary policy on growth is discussed within the institutional framework for countries with different income levels. The findings from the GMM estimator showed that the effect of contractionary monetary policy on growth is negative in all countries. On the other hand, it is concluded that the impact of all institutional indicators is positive in high and upper-middle-income countries and that the increase in institutional quality reduces the adverse effects of contractionary monetary policy on growth. In terms of lower-middle-income countries, the effects of some institutional variables are found to be statistically insignificant.
Keywords : Kurumsal İktisat, Para Politikası, Ekonomik Büyüme, Sistem GMM